Credit Management Practices and Financial Performance of Commercial Banks in Rwanda: A Case of Access Bank Plc

Q3 Economics, Econometrics and Finance Afro-Asian Journal of Finance and Accounting Pub Date : 2023-06-16 DOI:10.53819/81018102t2156

Emma Isaac

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Abstract

This paper examined the effect of credit management practices on financial performance of commercial banks in Rwanda with reference of Access Bank Plc. The specific objectives are to assess the effect of credit rating on performance of Access Bank Plc, to determine the effect of credit monitoring on performance of Access Bank Plc and to examine the effect of credit recovery on performance of Access Bank Plc. The researcher used liquidity theory of credit and the information theory of credit. The study used descriptive and correlational research design. The target population was 164 employees of Access Bank Plc. The study collected data from a sample size of 116 employees of Access Bank Plc at Head office in Kigali City. It used questionnaire and financial statements of Access Bank Plc to collect data and descriptive statistics and multiple regression model to analyse data. Descriptive statistics such as mean, frequency and standard deviation was used. The multiple regression analysis was use to assess the effects of multiple predictor variables on the dependent measure. Results from the first objective show that that access bank assessment of the capacity to pay loan was strongly agreed by 44.7% was used as a credit rating component at Access Bank Plc. Access Bank has used credit reference report as strongly agreed by 30.1%. Results from the second objective indicated that credit term was adopted as strongly agreed by 54.4%, credit standards as strongly agreed by 36.9 %, 40.8%, credit limits, 30.1% strongly agreed. Results to the third objective show models of loan repayment platform demonstrated that 53.4% of respondents strongly agreed with the statements. Therefore, 44.7 strongly agreed that the Access bank is continually assessment as 33.0%. Results 54.9% strongly agreed with legal enforcements. The study recommended that researcher’s asses this factors impact on credit management practices, its execution and financial performance.

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卢旺达商业银行信贷管理实践与财务绩效:以Access Bank Plc为例

本文以Access Bank Plc为例，考察了信贷管理实践对卢旺达商业银行财务绩效的影响。具体目标是评估信用评级对Access Bank Plc业绩的影响，确定信用监控对Access Bank Plc业绩的影响，并检查信用恢复对Access Bank Plc业绩的影响。研究人员运用了信贷流动性理论和信贷信息理论。本研究采用描述性和相关性研究设计。目标人群为Access Bank Plc的164名员工。该研究收集了基加利市Access Bank Plc总部116名员工的样本数据。使用Access Bank Plc的问卷调查和财务报表收集数据，并使用描述性统计和多元回归模型对数据进行分析。采用了均值、频率和标准差等描述性统计。采用多元回归分析评估多个预测变量对因变量的影响。第一个目标的结果表明，访问银行对支付贷款能力的评估得到44.7%的强烈同意，被用作访问银行Plc的信用评级组成部分。Access Bank使用了30.1%强烈同意的信用参考报告。第二目标的结果表明，采用信贷期限的占54.4%，采用信贷标准的占36.9%，采用信贷标准的占40.8%，采用信贷额度的占30.1%。对第三个目标显示的还款平台模型的结果显示，53.4%的受访者强烈同意上述说法。因此，44.7人强烈同意Access bank继续被评估为33.0%。结果54.9%的人强烈赞同执法。研究建议研究人员评估这些因素对信贷管理实践、执行和财务绩效的影响。

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来源期刊

Afro-Asian Journal of Finance and Accounting Economics, Econometrics and Finance-Finance

CiteScore

0.70

自引率

0.00%

发文量

期刊介绍： Finance and accounting are seen as essential components for the successful implementation of market-based development policies supporting economic liberalisation in the rapidly emerging economies in Africa, the Middle-East and Asia. AAJFA aims to foster greater discussion and research of the development of the finance and accounting disciplines in these regions. A major feature of the journal will be to emphasise the implications of this development and the effects on businesses, academics and professionals. Topics covered include: -Asset pricing, corporate finance, banking; market microstructure -Behavioural and experimental finance; law and finance -Emerging economies: finance, audit committees, corporate governance -Islamic finance, accounting and auditing -Equity analysis and valuation, venture capital and IPOs -National GAAP and IASs compliance, harmonisation and strategies -Financial measurement/disclosure, and the quality of information reported -Accountability and social/ethical/environmental measurement/reporting -Cultural, political, institutional impact on financial measurement/disclosure -Accounting practices for intellectual capital and other intangible assets -Provision of non-audit services and impairment to auditor independence -Audit quality and auditor skills; internal control/auditing -Management accounting, control and /use of key performance indicators -Accounting education and professional development, accounting history -Public sector and not-for-profit accounting